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Wednesday, January 16, 2013

Public Invest Research keeps Outperform call on TRC Synergy (STAR)

KUALA LUMPUR: Public Invest Research is maintaining its Outperform recommendation on TRC Synergy with a target price of 67 sen, pegged at 10 times of FY13 EPS.

"We still like TRC given that it is a good proxy to the Klang Valley MRT project, exposure in SCORE (Sarawak Corridor of Renewable Energy) projects and strong balance sheet," it said on Wednesday.

Public Invest Research said recent news report indicated that Prasarana's mixed development project at Ara Damansara, which was awarded to TRC's unit, Trans Resources Corp Sdn Bhd last year would be unveiled soon.

The proposed mixed development on a 12-acre site would have a combined gorss development value of RM800mil and development period of four to six years.

"We expect the project to generate RM120mil in net profit or RM20mil to RM30mil per year over the development period which in our view, will anchor the group's earnings going forward apart from the construction business.

"We understand the project will be launched in 2HCY2013. No change to our earnings estimates as yet pending the signing of the project," said the research house.

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